Turkish brands make a beeline for Iran

It seems no sooner were the economic sanctions against Iran lifted two weeks ago, European firms are ready to do business with the Islamic republic again, supported by president Hassan Rouhani's latest visit to Europe. Apparel brands are no exceptions and Turkish companies have been especially quick in trying to capture a piece of the new market with 80 million potential new customers.

Leading Turkish apparel brand D'S Damat for example opened a flagship store in Tehran's busy Mirdamad shopping street already on January 19 as part of five new stores in Iran, Iraq and Jordan. By the end of the year, it hopes to open 20 more stores abroad.

“Our goal is to open eight stores this year in Iran, followed by new stores in Italy, Poland, the Czech Republic, South Africa, Qatar, Bahrain, Saudi Arabia, Romania and Egypt. We aim to double our exports by the end of the year,” confirmed Suleyman Orakçıoğlu, chairman of the Orka Group that owns the D'S Damat, Damat and Tween brands.

Turkish retailer Mudo has also said it was considering starting operations in Iran this year. And according to the United Brands Association (BMD) - an Istanbul-based umbrella organisation for more than 500 renowned Turkish brands and retailers – about 865 stores could be opened in Iran by Turkish brands and retailers over the next three years.

“Twenty-nine of our brands already have 135 stores in Iran. As the embargoes are being lifted, 20 more brands are now able to open 500 stores in total. With the new stores that will be set up by existing Turkish companies in Iran, the total number could rise to 1,000 after three years,” said a BMD official as quoted by Turkish Daily Today's Zaman.

“Iran has become an attractive market for Turks after the sanctions, but it is challenging as well,” said Bilgin Aygül, head of the Turkish-Iranian Business Council. Turkish exports to Iran more than halved from 9.9 billion US dollars in 2012 to 4.1 billion US dollar in 2013 and then dipped further to 3.8 billion US dollars in 2014 and 3.68 billion US dollars in 2015.

Image: store opening in Tehran / D'S Damat